On October 19, 2026, Morgan Stanley designated Amazon.com Inc (NASDAQ: AMZN) as its Top Pick, maintaining an Overweight rating. Analyst Brian Nowak emphasized A
On October 19, 2026, Morgan Stanley designated Amazon.com Inc (NASDAQ: AMZN) as its Top Pick, maintaining an Overweight rating.
Analyst Brian Nowak emphasized A
On October 19, 2026, Morgan Stanley designated Amazon.com Inc (NASDAQ: AMZN) as its Top Pick, maintaining an Overweight rating. Analyst Brian Nowak emphasized Amazon’s expanding high-margin e-commerce, growing Prime membership, robust cloud services, and profitable advertising business. He also highlighted Amazon’s AI initiatives, projecting AWS revenue could reach $1 trillion and potentially double the stock price. Following this announcement, Amazon shares surged over 5% on Monday.
Amazon’s current Price-to-Sales (P/S) ratio stands at 3.73, slightly above its historical median of 3.46, reflecting market expectations of sustained growth despite the company’s unprofitable and cash-flow-negative status, making earnings-based valuation metrics like P/E less relevant.
The company’s GF Score™ is an impressive 93 out of 100, indicating strong overall fundamentals with particular strengths in growth and profitability.
Insider activity shows significant selling with no insider purchases reported over the past 12 months, totaling $456.9 million in shares sold, while 51 premium gurus currently hold AMZN, with a nearly balanced flow of additions and trims in recent quarters.
What's Behind the News?
Morgan Stanley’s reaffirmation of Amazon as a Top Pick underscores the company’s strategic positioning in multiple high-growth sectors. The firm’s bullish stance is driven by Amazon’s leadership in high-margin e-commerce, an expanding Prime membership base that bundles shipping and digital content, and a rapidly growing advertising segment. Most notably, the firm’s analyst Brian Nowak spotlighted Amazon’s AI initiatives as a catalyst for exponential growth, particularly within Amazon Web Services (AWS), forecasting AWS revenue could hit $1 trillion. This projection implies a transformative impact on Amazon’s cloud business and overall valuation, contributing to a 4% increase in Morgan Stanley’s price target to $350 per share, representing a 40% upside from the previous close.
Amazon.com Inc operates across three main segments: North America, International, and Amazon Web Services. The company serves a diverse customer base including consumers, sellers, developers, enterprises, content creators, and advertisers. It sells hundreds of millions of products through its online and physical stores, supported by its own logistics network. Amazon also offers devices such as Kindle, Fire TV, Echo, and Ring, and runs a large advertising business. AWS is the leading cloud computing provider globally, offering on-demand compute, storage, database, analytics, AI, and machine learning services. As of the end of 2025, Amazon employed approximately 1.6 million people. The company’s market capitalization stands at $2.84 trillion, placing it among the largest consumer cyclical stocks.
Is AMZN Overvalued on a Price-to-Sales Basis?
Averytin News Financial update.